India's First Chip Fabrication Plant: Government Notifies Tata Semiconductor SEZ in Dholera, Gujarat

The Government has notified the establishment of a Special Economic Zone (SEZ) by M/s. Tata Semiconductor Manufacturing Private Limited exclusively for Electronic Hardware and Software including IT/ITES at Dholera, Gujarat. The SEZ will be spread over 66.166 hectares of land and is set to provide employment to 21,000 persons. It is designed to support electronic hardware, software, and IT-enabled services, and includes enabling infrastructure and a dedicated approval mechanism to streamline operations and logistics. This is India’s first chip fabrication plant.

The notification follows earlier steps taken by the Government to strengthen India’s semiconductor and electronics manufacturing ecosystem through progressive reforms in the Special Economic Zones (SEZ) law and targeted approvals of sector-specific SEZs. These reforms are aimed at promoting high-value, capital-intensive investments, fostering innovation, and enhancing ease of doing business on developing a globally competitive semiconductor ecosystem.

Key amendments to the SEZ Rules, 2006 were carried out through a notification dated 03.06.2025 to address the unique requirements of semiconductor and electronics manufacturing. The changes include reduction in the minimum land requirement from 50 hectares to 10 hectares, flexibility in encumbrance norms, inclusion of free-of-cost supplies in Ne...